Multi Family Appraisals

Hello all, quick question about multi-family appraisals. Other than just pulling comps of similar properties, is there any way that I can determine or calculate what an appraisal will come in at for a 5+ unit building? Income approach?

5+ units / multi-purpose always use income approach. However , if you can find similar buildings/property near by that shares enough characteristics, using that as a relative comp might be beneficial. Good luck!

@Daniel Weber the short answer to your question is... No. Appraisals are unfortunately subjective and so you can't really predict how they will come in on any property. But most commercial appraisers these days seem to use a combination of the income and comparable sales approach. Interestingly they include the replacement approach but do not use it which I find fascinating.

But if you know of a few really good close comps and you have solid, industry standard NOI you can get an idea of what it will come in at. Just don't count on it because individual appraisers can be very different.

I'm in the middle of a refinance of 12 properties right now where I had to give an up-front estimate of the market value of the properties.

I estimated too high on 4 of the properties which are multi-family but too low on the other 8 which are single-family. In total, I came up with the exact same number the appraiser did. So just shows you it's very subjective.